Most environmentalists take a dim view of cryptocurrency. They especially point the finger at Bitcoin which causes significant energy expenditure by its mining as well as by the security of its transactions.
Good news ! We can look at this problem from another angle. It is indeed possible to perceive Bitcoin as a lever to accelerate the transition to renewable energy. Excessive energy consumption linked to cryptocurrencies (like Bitcoin) can promote innovations in the field of renewable energy. This is also the opinion of the CEO of ERCOT when he asserts that “Bitcoin is a great opportunity for renewable energy production”.
The words of the CEO of the head of the Texas energy network.
The problem: BTC is very energy-intensive
Like other major countries around the world, America is stepping up its efforts to switch to renewable energy. Its strategy: to reduce carbon emissions as much as possible and eliminate fossil fuels. Such a project is often accompanied by various measures aimed at reducing energy expenditure at both household and business level.
The reality is quite different. America must indeed deal with the excessive energy demands of cryptocurrencies, including Bitcoin. Because of its mining and to ensure network security, Bitcoin is very energy intensive.
And given the growing number of Bitcoin users, this demand will only increase. As you can read on This article, this demand could reach 6 GW in June 2023 if we take the state of Texas apart. A demand that only a new electricity network can meet.
The solution: collaboration between Bitcoin miners and Ercot
According to Bloomberg websiteBrad John, the interim CEO of Ercot, hinted in April that the state of Texas is working with miners to prepare the grid to handle 25 gigawatts of cryptocurrency power demand.
For their part, cryptocurrency miners say they are ready to participate in stabilizing the Texas energy grid. To do this, they propose to ingest the excess energy produced by wind and solar farms during the day. When the demand peaks and when there is no more excess energy, they will turn off the system.
It’s a completely possible collaboration if we refer to what happened during the big heat wave this summer. When the demand for electricity reached its peak, the majority of the miners indeed ceased their activities to face the heat wave.
Based on the growing demand for energy needed by cryptocurrency miners like Bitcoin, the Ercot network should find a solution. Technically, it is almost impossible to meet this demand except by creating a new energy network. But working with miners can be a lasting solution.
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